Almost half of councils increase bailiff use as council tax arrears hit £7.4bn

Posted August 27, 2026

Almost half (48% or 153 councils) of local authorities in England and Wales increased their use of bailiffs to collect council tax debt in 2025/26, according to new Freedom of Information research by National Debtline as part of our latest Stop the Knock campaign.

Our research also revealed a reduction in protections for some of the lowest-income households. Just 26 local authorities said they exempt residents receiving Council Tax Support - a scheme to support people on low incomes with their council tax bill - from bailiff action, down from 35 councils last year.

The findings come as MCHLG data reveals that council tax arrears have climbed from £6.6 billion to a record £7.4 billion, highlighting the growing financial pressure facing households across England and Wales.

Overall, we found that 1.72 million council tax arrears cases were passed to bailiffs by councils during 2025/26, a figure largely unchanged from 1.74 million in 2024/25. These numbers demonstrate the continued reliance on enforcement action despite ongoing cost-of-living pressures.

Council tax debt remains a significant problem for people seeking help from our services. Almost a third (31%) of people who contacted National Debtline had council tax debt. This makes it the third most common debt type the charity's advisers hear about, behind credit cards and energy bills.

National Debtline is calling on councils to adopt fairer collection practices and provide greater protection for residents facing financial hardship.

Steve Vaid, Chief Executive of the Money Advice Trust, the charity that runs National Debtline, says:

"Council tax debt is one of the most common problems we help people with every day, and these figures paint a worrying picture.

"We know councils are stretched and they have a responsibility to collect council tax and fund vital local services. But they also have a responsibility to support people who genuinely cannot afford to pay. For households already struggling to cover essential bills, bailiff action can quickly make a difficult situation much worse.

"It is desperately disappointing to see the number of councils exempting residents receiving Council Tax Support from bailiff action fall again. These households are among the most financially vulnerable, and councils should be doing more to support them rather than exposing them to additional enforcement activity."

David's story

David was working as a Transport Planning Manager when a series of events – the breakdown of his relationship, becoming a single parent to his daughter and the death of his father – left him struggling financially.

Despite contacting his local council at an early stage to seek support, David says he felt “there was a distinct lack of sympathy for my situation” and the support they were able to offer was limited. As a result, he was unable to agree an affordable repayment plan.

As arrears escalated, bailiffs visited his home on several occasions. David describes the bailiffs as “naïve, unhelpful and having zero sympathy”. Despite asking enforcement agents to be discreet, David says their threatening approach further affected his daughter’s wellbeing, which was already fragile due to ongoing mental health challenges. During this period, he was forced to leave his job due to ongoing family pressures and relied on food banks while undertaking intermittent work to make ends meet.

After contacting National Debtline, David set up a Debt Relief Order (DRO), which is now in progress and helping him move towards financial stability. He has since rebuilt his career and has been working as a Fuel Manager for the past 18 months. However, he says careful budgeting remains essential as he continues to manage outstanding costs and recover from the impact of his financial difficulties.

Changes on the way, but more reform still needed

There is some positive news on the horizon. Following the Government's wide-ranging consultation on council tax administration, several reforms are expected in 2027. These are aimed at creating a fairer and more proportionate system for people struggling with payments. 

The changes will require councils to wait longer - 63 days, up from two weeks - before demanding a full year's council tax following a missed instalment; offer more affordable repayment arrangements; and a new £100 cap on court-related fees. Alongside this, there will be stronger emphasis on reducing aggressive enforcement practices such as the use of bailiffs, better protections for vulnerable households and a shift to 12 monthly payments, instead of the current 10, by default to make bills more manageable. 

We have welcomed these changes following years of campaigning on council tax reform, but says further action is still needed. It is urging the government to set out a series of statutory steps councils must take before passing debts onto bailiffs and for better central government funding to ensure that all councils offer 100% Council Tax Support for anyone who requires it.

We are also calling on the Government to follow through with proposals to regulate the bailiff industry and give the Enforcement Conduct Board statutory powers to oversee the sector.

Steve continues:

"The reforms due to come into force in 2027 represent a significant step towards a fairer council tax collection system and should make a real difference for people who fall behind with payments. However, more action is needed. We would like to see stronger regulation of the bailiff industry, alongside greater investment in local Council Tax Support schemes, to help prevent people falling into council tax debt in the first place.”

We are urging anyone worried about council tax debt or facing enforcement action to seek free, independent advice as soon as possible. The earlier someone gets help, the more options they are likely to have available.

Find out more about the campaign here.

---

---

---

---